9911796707
|
Home
Issues:
1. Condonation of delay in filing the appeal 2. Service tax liability on a cooperative society for goods transportation services 3. Claim of acting on behalf of the government to avoid tax liability 4. Eligibility for availing abatement of 70% from the value of service 5. Waiver of pre-deposit of tax and penalty based on government stake in the society Analysis: 1. The judgment addressed the issue of condonation of a 5-day delay in filing the appeal. The delay was considered and allowed, with the COD application being approved by the tribunal. 2. The main issue revolved around the service tax liability of a cooperative society for receiving goods transportation services and paying freight without remitting the service tax. The society claimed to have acted on behalf of the Chattisgarh Government to avoid tax liability. 3. The advocate representing the society argued that the demand for tax was partly barred by limitation and that they were eligible for availing a 70% abatement from the value of the service, subject to fulfilling notification conditions. 4. The tribunal noted that the question of levy of tax on the society would be examined during the regular hearing. It was observed that the society failed to establish a prima facie case for the waiver of pre-deposit of the entire tax and penalty amount. 5. Considering the government's 90% stake in the society and the circumstances of the case, the tribunal directed the society to deposit Rs. 50,00,000 within 8 weeks. Upon compliance with this directive, the pre-deposit of the remaining tax and penalty amount would be waived, with a reporting deadline set for February 17, 2009.
|
